The Apex of Artificial Intelligence.
Where to begin.
A duct taped banana just sold for $6.2 million at auction:
"At one point another artist took the banana off the wall and ate it."
Archaeologists will look back at this collapsed society and wonder how could there have been so many idiots at the Apex of Artificial Intelligence. Sadly they will conclude that humankind had traded human intelligence for computer intelligence.
Of course in linear calculations, computers are orders of magnitude more intelligent than humans. However, in terms of non-linear calculation, the smartest computer is at best as intelligent as a toddler. Today's most advanced robots are still relegated to highly repetitive simplistic tasks. Humans make hundreds of subconscious mental "adjustments" on a daily basis. If a first attempt fails, we quickly adjust and retry until we succeed. These minor corrections are so unnoticeable that many humans have come to believe they are infallible despite being wrong every day much of the time.
Computers are not nearly as adept at non-linear adjustment. When the first attempt fails, computers recalculate another linear trajectory that is often equally as unsuccessful, wasting time and computing cycles in the process. Consider an autonomous car stuck in downtown traffic. The road is closed to traffic. How many times have you noticed GPS is unable to navigate a detour. Detours are unexpected, incalculable, often requiring a much longer path and often requiring the driver to roll down the window to speak to another human.
The fatal flaw in human intelligence has always been emotion. We are not a logical species, we are an emotional species. Which is where Elliott Wave Theory comes into play. EWT merely posits that stock market patterns exhibit repeating patterns which indicate the state of social mood. A straight line rally is called an "impulse", whereas a three wave rally is a correction of the larger trend.
Recall the Adani Group of Indian stocks collapsed in early 2023 amid allegations of rampant accounting fraud. The stock imploded in a five wave impulse and then finally began to rally back in a three wave correction. This pattern below is identical to the Dow pattern in 1929/1930. Five down followed by a rally back that ultimately led to a -90% decline. During this Adani correction, pundits wide and far believed that the 2023 incident was ancient history. They were wrong.
Here is the news that came out Wednesday night:
Clearly, the fraud never went away, it was merely ignored for the better part of two years:
Going into Thanksgiving week, Bitcoin is reaching for $100,000 and Microstrategy which is a leveraged play on Bitcoin is now up 650% year to date on record volume today.
Microstrategy, Nvidia and Tesla are consistently the highest dollar volume stocks on the Nasdaq. And they also have the most popular leveraged ETFs. In other words investors are piling into options on futures on the highest octane stocks.
"The T-Rex 2X Long MSTR Daily Target ETF (MSTU) is up 900% since it started trading Sept. 18"
“MicroStrategy itself could be viewed as a leveraged play on the price of bitcoin, and MSTU takes that inherent leverage to another level and investors simply can’t get enough"
900% in two months, not bad.
Meanwhile, Microstrategy has announced THREE new Bitcoin purchases in the past eight days. Each announcement sends Microstrategy and Bitcoin speculators into renewed frenzy.
As I write, Bitcoin just hit $97,000.
After hours, Nvidia reported "better than expected" earnings that failed to garner a stock market rally. I will reserve judgement until tomorrow, however it's highly likely that deja vu of 2021, we are witnessing the blow-off top.
If so, then instead of the end of year melt-up that is widely expected, there instead will be an end of year meltdown on a biblical scale.
Appropriately beginning at the apex of Artificial Intelligence.
